The RBA has decided to leave the official cash rate unchanged at 1.5% for the 29th consecutive time and we’d like to share some thoughts on why the Reserve Bank of Australia has made this decision.
Only twice before has the RBA elected to drop rates during an election campaign and on both those occasions the incumbent governing party lost the election. Despite inflation falling below its target range of 2-3%, continued falls in house prices, concerns around rising home loan arrears levels, a borrowing squeeze in response to the Banking Royal Commission and slow wages growth it appears the RBA has elected to allow the federal election to run its course before intervening.
With lenders continuing to review rates independently of the RBA, it is important to review your lending options regularly to ensure they remain the most suitable for your situation. There may be different rates available from our wide panel of lenders and an AFG broker is always available to ensure you have the right financial solution for your current and future circumstances.
If you’d like to have a chat about what today’s news means for you and your finances, please don’t hesitate to get in touch with an AFG broker.